Marginal note:References to other enactments

3. A reference in this Act to a repealed enactment, or a portion of it, of the legislature of a province or territory shall, with respect to a subsequent transaction, matter or thing, be read as a reference to the provisions of any enactment replacing the repealed enactment or portion that relate to the same subject-matter as the repealed enactment or portion. If there is no replacement enactment or portion, or if there are no provisions in the replacement enactment that relate to the same subject-matter, the repealed enactment or portion shall be read as unrepealed in so far as is necessary to maintain or give effect to the reference.

Meaning of “administration or enforcement of this Act”

4. For greater certainty, a reference in this Act to “administration or enforcement of this Act” includes the collection of any amount payable under this Act.

Marginal note:Constructive possession

• 5. (1) For the purposes of subsections 30(1) and 32(1), section 61, subsections 70(1) and 88(1) and sections 230 and 231, if one of two or more persons, with the knowledge and consent of the rest of them, has anything in the person’s possession, it is deemed to be in the custody and possession of each and all of them.

• Meaning of “possession”

  (2) In this section and in subsections 30(1) and 32(1), section 61 and subsections 70(1) and 88(1), “possession” means not only having in one’s own personal possession but also knowingly

  • (a) having in the actual possession or custody of another person; or

  • (b) having in any place, whether belonging to or occupied by one’s self or not, for one’s own use or benefit or that of another person.

Marginal note:Arm’s length

• 6. (1) For the purposes of this Act,

  • (a) related persons are deemed not to deal with each other at arm’s length; and

  • (b) it is a question of fact whether persons not related to each other were, at any particular time, dealing with each other at arm’s length.

• Marginal note:Related persons

  (2) For the purposes of this Act, persons are related to each other if they are related persons within the meaning of subsections 251(2) to (6) of the Income Tax Act, except that

  • (a) a reference in those subsections to “corporation” shall be read as a reference to “corporation or partnership”; and

  • (b) a reference in those subsections to “shares” or “shareholders” shall, in respect of a partnership, be read as a reference to “rights” or “partners”, respectively.

PART 1APPLICATION AND ADMINISTRATIVE MATTERS

Application to Her Majesty

Marginal note:Act binding on Her Majesty

7. This Act is binding on Her Majesty and Her Majesty in right of a province.

Administration and Officers

Marginal note:Minister’s duty

8. The Minister shall administer and enforce this Act and the Commissioner may exercise the powers and perform the duties of the Minister under this Act.

Marginal note:Officers and employees

• 9. (1) The officers, employees and agents that are necessary to administer and enforce this Act shall be appointed, employed or engaged in the manner authorized by law.

• Marginal note:Delegation of powers

  (2) The Minister may authorize a designated officer or agent or a class of officers or agents to exercise powers or perform duties of the Minister, including any judicial or quasi-judicial power or duty of the Minister, under this Act.

Marginal note:Designation of police forces

• 10. (1) The Minister and the Solicitor General of Canada may designate any police force in Canada for the purposes of the enforcement of any of the provisions of this Act that are specified in the designation, subject to any terms and conditions specified in the designation, for any period specified in the designation.

• Marginal note:Persons to have powers and duties of officers

  (2) All members of a police force designated under subsection (1) have the powers and duties of an officer for the purposes of the enforcement of the provisions of this Act specified in the designation.

• Marginal note:Designation to be published

  (3) A designation under subsection (1) or any variation or cancellation of that designation must be published in the Canada Gazette and is not effective before it is so published.

Marginal note:Designation of analysts

11. The Minister may designate any person or class of persons as an analyst for the purposes of this Act.

Marginal note:Administration of oaths

12. Any officer, if designated by the Minister for the purpose, may administer oaths and take and receive affidavits, declarations and affirmations for the purposes of or incidental to the administration or enforcement of this Act, and every officer so designated has for those purposes all the powers of a commissioner for administering oaths or taking affidavits.

Inquiries

Marginal note:Authorization of inquiry

• 13. (1) The Minister may, for any purpose related to the administration or enforcement of this Act, authorize any person, whether or not the person is an officer, to make any inquiry that the Minister considers necessary with reference to anything relating to the administration or enforcement of this Act.

• Marginal note:Appointment of hearing officer

  (2) If the Minister authorizes a person to make an inquiry, the Minister shall without delay apply to the Tax Court for an order appointing a hearing officer before whom the inquiry will be held.

• Marginal note:Powers of hearing officer

  (3) For the purposes of an inquiry, a hearing officer has all of the powers conferred on a commissioner under sections 4 and 5 of the Inquiries Act and that may be conferred on a commissioner under section 11 of that Act.

• Marginal note:When powers to be exercised

  (4) A hearing officer shall exercise the powers conferred on a commissioner under section 4 of the Inquiries Act in relation to any person that the person authorized to make the inquiry considers appropriate for the conduct of the inquiry, but the hearing officer shall not exercise the power to punish any person unless, on application by the hearing officer, a judge certifies that the power may be exercised in the matter disclosed in the application and the applicant has given to the person in respect of whom the power is proposed to be exercised 24 hours notice of the hearing of the application, or any shorter notice that the judge considers reasonable.

• Marginal note:Rights of witnesses

  (5) Any person who gives evidence in an inquiry is entitled to be represented by counsel and, on request made by the person to the Minister, to receive a transcript of that evidence.

• Marginal note:Rights of person investigated

  (6) Any person whose affairs are investigated in the course of an inquiry is entitled to be present and to be represented by counsel throughout the inquiry unless the hearing officer, on application by the Minister or a person giving evidence, orders otherwise in relation to the whole or any part of the inquiry, on the ground that the presence of the person and their counsel, or either of them, would be prejudicial to the effective conduct of the inquiry.

PART 2LICENCES AND REGISTRATIONS

Licences

Marginal note:Issuance

• 14. (1) Subject to the regulations, on application, the Minister may issue to a person

  • (a) a spirits licence, authorizing the person to produce or package spirits;

  • (b) a wine licence, authorizing the person to produce or package wine;

  • (c) a user’s licence, authorizing the person to use bulk alcohol or non-duty-paid packaged alcohol;

  • (d) a tobacco licence, authorizing the person to manufacture tobacco products; or

  • (e) a tobacco dealer’s licence, authorizing the person to carry on the activity of a tobacco dealer.

• Marginal note:Deemed packaging excluded

  (2) A person is not entitled to a licence under paragraph (1)(a) or (b) by reason only of having been deemed to have packaged alcohol under section 77 or 82.

• Marginal note:Deemed production excluded

  (3) A person is not entitled to a licence under paragraph (1)(a) by reason only of having been deemed to have produced spirits under subsection 131(2).

Registrations

Marginal note:Ferment-on-premises registration

15. Subject to the regulations, on application, the Minister may issue a ferment-on-premises registration to a person authorizing the person to possess at their ferment-on-premises facility bulk wine produced at the premises by an individual and owned by the individual.

Marginal note:User’s registration

16. Subject to the regulations, on application, the Minister may issue a user’s registration authorizing the use of non-duty-paid packaged spirits by

• (a) a scientific and research laboratory in receipt annually of aid from the Government of Canada or a province, for scientific purposes;

• (b) a university or other post-secondary educational institution recognized by a province, for scientific purposes;

• (c) a health care facility, for medicinal and scientific purposes; or

• (d) a health institution in receipt annually of aid from the Government of Canada or a province, for medicinal and scientific purposes.

Marginal note:Alcohol registration

17. Subject to the regulations, on application, the Minister may issue an alcohol registration to a person authorizing the person to store or transport bulk alcohol or specially denatured alcohol.

Marginal note:SDA registration

• 18. (1) Subject to the regulations, on application, the Minister may issue a specially denatured alcohol registration to a person authorizing the person to possess and use specially denatured alcohol.

• Marginal note:Restrictions on grades of SDA

  (2) The Minister may impose restrictions on the use of particular grades of specially denatured alcohol.

Excise Warehouses

Marginal note:Issuance of licence

• 19. (1) Subject to the regulations, on application, the Minister may issue an excise warehouse licence to a person who is not a retailer of alcohol authorizing the person to possess in their excise warehouse non-duty-paid packaged alcohol or a tobacco product that is not stamped.

• Marginal note:Eligible retailers of alcohol

  (2) Even if they are retailers of alcohol, the following persons may be issued an excise warehouse licence under subsection (1):

  • (a) an alcohol licensee;

  • (b) a liquor authority; and

  • (c) any person who supplies goods in accordance with the Ships’ Stores Regulations.

Special Excise Warehouses

Marginal note:Issuance of licence

• 20. (1) Subject to the regulations, on application, the Minister may issue a special excise warehouse licence to a person who is authorized by a tobacco licensee to be the only person, other than the licensee, who is entitled to distribute to an accredited representative a tobacco product manufactured by the licensee.

• Marginal note:Single licence

  (2) The Minister shall not issue to the same person more than one special excise warehouse licence.

• Marginal note:Licence limited to one premises

  (3) The Minister shall not specify more than one premises of a special excise warehouse licensee as a special excise warehouse.

Marginal note:Return of tobacco products

• 21. (1) If a person ceases to be authorized by a tobacco licensee to distribute to an accredited representative a tobacco product manufactured by the tobacco licensee,

  • (a) the person shall immediately return the tobacco product of that licensee that is stored in the person’s special excise warehouse to the excise warehouse of the tobacco licensee; and

  • (b) the tobacco licensee shall immediately notify the Minister in writing that the person has ceased to be so authorized.

• Marginal note:Cancellation

  (2) The Minister shall cancel the special excise warehouse licence of the person if the person is no longer authorized by any tobacco licensee to distribute to an accredited representative a tobacco product.

Duty Free Shops

Marginal note:Issuance of licence

22. Subject to the regulations, the Minister may, on application, issue to a person who is licensed under the Customs Act to operate a duty free shop a licence authorizing the person to possess and sell imported manufactured tobacco that is subject to a special duty under section 53.

General

Marginal note:Refusal to issue licence or registration

• 23. (1) The Minister may, for any reason the Minister considers sufficient in the public interest, refuse to issue a licence or registration.

• Marginal note:Amendment or renewal

  (2) Subject to the regulations, the Minister may amend, suspend, renew, cancel or reinstate any licence or registration.

• Marginal note:Conditions imposed by Minister

  (3) On issuing a licence or registration, or at any later time, the Minister

  • (a) may, subject to the regulations, specify the activities that may be carried on under the licence or registration and the premises where those activities may be carried on;

  • (b) shall, in the case of a spirits licence or a tobacco licence, require security in a form satisfactory to the Minister and in an amount determined in accordance with the regulations; and

  • (c) may impose any other conditions that the Minister considers appropriate with respect to the carrying on of activities under the licence or registration.

Marginal note:Compliance with Act

24. A licensee or registrant shall not carry on any activity under their licence or registration otherwise than in accordance with this Act.

PART 3TOBACCO

Regulation of Tobacco

Marginal note:Manufacturing tobacco product without a licence prohibited

• 25. (1) No person shall, other than in accordance with a tobacco licence issued to the person, manufacture a tobacco product.

• Marginal note:Deemed manufacturer

  (2) A person who, whether for consideration or otherwise, provides or offers to provide in their place of business equipment for use in that place by another person in the manufacture of a tobacco product is deemed to be manufacturing the tobacco product and the other person is deemed not to be manufacturing the tobacco product.

• Marginal note:Exception — manufacturing for personal use

  (3) An individual who is not a tobacco licensee may manufacture a tobacco product

  • (a) from packaged raw leaf tobacco or manufactured tobacco on which the duty has been paid, if the product is for their personal use; or

  • (b) from raw leaf tobacco grown on land on which the individual resides, if

    • (i) the product is for their personal use or that of the members of their family who reside with the individual and who are 18 years of age or older, and

    • (ii) the quantity of product manufactured in any year does not exceed 15 kg for the individual and each member of the individual’s family who resides with the individual and who is 18 years of age or older.

Marginal note:Tobacco dealer

26. No person shall carry on the activity of a tobacco dealer except in accordance with a tobacco dealer’s licence issued to the person.

Marginal note:Unlawful packaging or stamping

27. No person shall package or stamp any raw leaf tobacco or tobacco product unless the person

• (a) is a tobacco licensee; or

• (b) is the importer or owner of the tobacco or product and it has been placed in a sufferance warehouse for the purpose of being stamped.

Marginal note:Unlawful removal

• 28. (1) Except as permitted under section 40, no person shall remove raw leaf tobacco or a tobacco product from the premises of a tobacco licensee unless the tobacco or product is packaged and

  • (a) if the product is intended for the duty-paid market, it is stamped; or

  • (b) if the product is not intended for the duty-paid market, all tobacco markings that are required under this Act to be printed on or affixed to its container are so printed or affixed.

• Marginal note:Exception

  (2) Subsection (1) does not apply to a tobacco licensee who removes from their premises

  • (a) raw leaf tobacco for return to a tobacco grower, for delivery to another tobacco licensee or for export; or

  • (b) partially manufactured tobacco for delivery to another tobacco licensee or for export.

Marginal note:Prohibition — certain tobacco products for sale, etc.

29. No person shall purchase or receive for sale a tobacco product

• (a) from a manufacturer who the person knows, or ought to know, is not a tobacco licensee;

• (b) that is required under this Act to be packaged and stamped unless it is so packaged and stamped; or

• (c) that the person knows, or ought to know, is fraudulently stamped.